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UK's Zoo Digital H1 revenue rises on higher demand for localisation services 

By Reuters News


Overview

  • UK localisation services firm's H1 revenue grew 5.5% yr/yr, driven by higher localisation demand

  • Adjusted EBITDA nearly doubled yr/yr as profitability improved on cost cuts and higher volumes

  • Company says H1 growth partly due to one-off catalogue projects unlikely to repeat in H2


Outlook

  • Zoo Digital expects FY27 revenue growth and profit progression in line with market expectations

  • Company does not expect certain one-off H1 projects to repeat in H2

  • Company says revenue visibility remains limited, focus remains on execution and cash generation


Result Drivers

  • LOCALISATION GROWTH - Higher volumes of localisation services, especially for older catalogue content licensed into new territories, drove revenue increase

  • COST STRUCTURE - Improved profitability attributed to a more efficient operating model and lower overheads

  • FASTER DELIVERY SERVICES - Increased uptake of premium and accelerated delivery services contributed to revenue mix shift


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

$23.60 mln

H1 Adjusted EBITDA

$3.60 mln

H1 Operating Profit

$1.50 mln

H1 Pretax Profit

$1.30 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the software peer group is "buy"


Reuters Recommended Reads

  • Nov 10 - Sweden's EG7 Q3 revenue rises 40% on strong studio growth

  • Nov 9 - UK's Kainos Group H1 revenue rises 37% on public sector contracts

  • Nov 9 - Vodafone Deutschland to axe 2,300 jobs as it steps up cost-cutting efforts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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